No NAB or AMP hybrids for this model portfolio

Key Points These hybrids are a rehash of earlier offers We analyse them using two different methods For our Conservative Portfolio, we’ll stick with the investments we’ve got It’s been a while between drinks, but NAB and AMP have the advisors back on the phones selling two new hybrid issues –Maximum Conversion Number) are important. They highlight the fact these products aren’t fixed interest securities (which put an obligation on issuers to pay interest and repay principal). The NAB CPS 2 are complicated quasi-equity securities with debt-like features and the AMP Sub Notes 2 are quasi-debt securities with equity-like...

It’s been a while between drinks, but NAB and AMP have the advisors back on the phones selling two new hybrid issues –Maximum Conversion Number) are important. They highlight the fact these products aren’t fixed interest securities (which put an obligation on issuers to pay interest and repay principal). The NAB CPS 2 are complicated quasi-equity securities with debt-like features and the AMP Sub Notes 2 are quasi-debt securities with equity-like features.

Where do you fit such securities into an investment portfolio? As they’re typically pitched to conservative income-focused investors, we’ll use our Conservative Portfolio as a case study.

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles